Pages

Office shot

Office shot
Dougmal Harcourts - The Property People

Thursday 25 September 2014

Attending an Open Home

Attending open homes in search of your ideal property can be an exciting time, however, you may find that there are a few issues on otherwise fantastic properties that are holding you back.

Rather than discounting a property based on these issues, have a closer look – these issues may have easy and cost-efficient fixes to gain you your ideal home.


Before attending an open home inspection, it’s a good idea to write a list of your top five priorities in a property so you have a thorough understanding of your ‘must haves’, as opposed to those things that you would ‘like to have’.

When attending open homes, have this list handy and check them off. Then take a note of any issues; perhaps take photos of them, for you to evaluate your options.

Here are a few examples of issues and fixes:

Construction
Poor construction of walls or floors may seem like a huge issue, but may be easy to fix. Some walls can be demolished to open up areas of the house, and floors fixed or new floors placed over the top to gain what you are looking for.

Unappealing design
Don’t be discouraged by the ugly tiles in the perfectly sized bathroom or kitchen. Tiles can easily be replaced. Many hardware stores also have easily constructed modern flat-pack cabinetry, and many can also install custom made timber, stone or acrylic bench tops.

Storage
Take note of the storage throughout the house and evaluate whether it is enough for your needs. If there is a lack of storage consider building a shed, built-in wardrobes, or a lovely set of drawers to serve your needs.

Air Conditioning
If there isn’t any heating or cooling in the property, it is easy to install air conditioning - and it certainly adds value to the property. Also consider insulation to keep the temperature constant and to reduce your power bills.

Exterior
The backyard is often full of opportunities to add value to the property. Adding a pergola, BBQ area, paving and beautiful gardens are all value adding projects.

Finally, when attending an inspection, don’t hesitate to ask the real estate agent as many questions as you like. They are there to help you get all the information you need.



Saturday 13 September 2014

Auctioning Your Property

The Auction method of selling is highly successful for all types of properties. Executed properly, and particularly in the current market conditions, the Auction method can result in thousands of dollars more for the property.

Why choose the Auction method to sell your property?
  1. An Auction removes the biggest obstacle that determines whether or not a buyer will enquire about your property – that’s ‘Price’! Auction allows the natural market forces of supply and demand to determine where your property’s true market value lies.
  2. The Auction method of selling is more aggressive when compared to other sale methods like ‘Fixed Price Sale’. Other sale methods can take up to 90 days to get a result, where an Auction takes less than half that amount of time! An Auction sale’s deadline means buyers cannot ‘sit back and wait’. This gives your agent greater control over potential buyers who want your property.
  3. The Auction method makes your agent move! Your agent should be hands-on every day over the Auction period, working with buyers in preparation for Auction day. Agents who auction typically manage fewer properties; however boast significantly higher sale prices.
  4. Did you know that Auctions in the Macarthur area enjoy an impressive 30% higher SOLD rate compared to other sale methods over the same 21 day marketing period? There can only be a few reasons for this: restricted time on sale; more agent input, effort and hours; and superior and more intense marketing campaigns. Put simply, there is more ‘action’ in the Auction selling method.
  5. Auction is the only method of sale where buyers can negotiate a property in real-time and in a totally transparent environment. There are no behind-doors negotiations!
  6. An Auction offers you interchangeable selling methods! If your property doesn’t sell at Auction, it can be changed to a Range Sale or Fixed Price Sale.
  7. Finally, the Auction sale method is the only one to offer you three opportunities to sell – i.e. sale prior to auction, sale at auction, and sale after auction. 

Friday 12 September 2014

Spring Market 2014!

Last week, the Reserve Bank announced a continuation of current interest rates, remaining steady at 2.5%. This makes it 13 consecutive months at this 60 year low.

These low interest rates have fuelled the strong winter selling season. Current conditions with strengthening auction clearance rates indicate a robust spring selling season ahead!

If you are thinking of taking advantage of the current market, you should start preparing now. 

So what do you first?

Get a market appraisal. Before you go ahead and undertake property preparations and/or renovations get an experienced real estate agent’s advice. You don’t want to undertake costly renovations that gain you little or nothing on the sale price. It’s a waste of your time and money.

A market appraisal will also show you comparable properties and what they have recently sold for. You may also want to ask your agent for a rent appraisal, to help you judge whether you want to sell or rent your property?

This critical information will equip you with all the facts and figures for future decisions. 

For more tips on preparing your home for a spring sale, visit www.propertypeople.net.au and on the home page you can download the FREE e-book Preparing your home for sale.


Friday 5 September 2014

Smart Property Management

Experienced landlords know that successful ownership of residential investment property is all about maximising long-term income, with little (or hopefully no) vacancy. Novice landlords and shortsighted Property Managers often simply focus on the amount of rent being achieved right now.

A vacant property obviously means lost income. Vacancy for just a few weeks can significantly reduce a landlord’s overall investment return, requiring an even higher rent to make up for the loss!

Tenant harmony is a crucial part of the rental income equation. Experienced landlords would agree that having rent set at around 90% of market value usually achieves a higher long-term income, rather than holding out for tenants who will pay the extra 10%. 

Additionally, tenants who pay this extra 10% are more likely to be finicky about little things, and make more demands for repairs and maintenance. Furthermore, top-paying tenants tend to look around to see what else is available for their money, and move if they find better value. This obviously causes interruption to a landlords’ rental income stream. 

Tenants paying 90% of market value know they are getting good value for money and are therefore content. Generally speaking, they demand less, look after the property better, and stay long-term. This regular and predictable income is ideal for landlords. 

Raising the rent
Many novice landlords and inexperienced Property Managers think that the best approach for raising the rent is to make frequent small increases. Tenants see this as “penny pinching”, which leads to disharmony, resulting in higher vacancy over the long term. 

Rent increases should occur when market indicators show that a 5% increase is warranted. Landlords should employ an experienced Property Manager that monitors the market and informs them when it is time to raise the rent. The Property Manager should then notify tenants and explain the reason for the rent increase. This method is most effective in managing the tenancy.